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Based on
sales through the auto parts channel, dollar sales for
appearance products and accessories were over 17 percent higher
in the month of March 2007 versus the same month in 2006.
According to information from
consumer and retail information company, The NPD Group,
marketers of vehicle appearance products could see a boost in
business this spring. The firm reports 12 percent of consumers
surveyed last fall indicated they would spend more money on
vehicle appearance this year; only four percent said they would
spend less.
While still in it's infancy, there are fewer than 200 custom
wheel and tire rent to own stores operating in the U.S. today,
wheel rental is considered by many RTO industry insiders as a
major growth opportunity for the coming decade.
In an era where the "golden window", the period of time between
the introduction of a new product and the time its retail cost
drops below the level at which the typical RTO consumer will
purchase rather than rent the item, the consistently high
margins of custom wheels are a welcome sight.
In March of this year, a poll by Specialty Equipment Marketing
Association (SEMA ) found that Appearance and vehicle-body
accessories top the list of products sold by SEMA members (see
story).
NPD says early data indicates that consumers may be following
through on their promise to spend more. Based upon NPD’s Early
Indicator Report on sales through the auto parts channel, dollar
sales for appearance products and accessories were over 17
percent higher in the month of March 2007 versus the same month
in 2006.
“Traditionally, the spring season brings consumers outside and
into the driveway for some much needed car care” said David
Portalatin, director of industry analysis for The NPD Group. He
adds, “The growth we’ve seen so far is especially encouraging,
given that winter has lingered in many parts of the country a
bit later than usual.”
Portalatin sees an opportunity for broader impact, beyond just
appearance. He continues, “Marketers of aftermarket products and
services should consider how they can leverage this opportunity
to drive sales in many categories. Think about bundling and
cross–promoting maintenance and/or repair–related categories to
help consumers take care of their cars, inside and out.”
NPD’s Car Care Trac data shows that although vehicle appearance
is a concern for drivers across the demographic spectrum,
consumers ages 18–24 are a bit more likely to purchase
appearance products. This segment is quite image–conscious and
this attitude extends to their vehicles, especially this time of
year. In addition, higher income consumers are also more likely
to buy appearance products. These consumer segments may hold the
key to unlocking big sales this spring.
Having the right brands will also be an important factor. When
asked how they would respond if their preferred appearance
product brand was not available, one out of four consumers said
they would not make the purchase at that time. One in five would
go to a different store to find their preferred brand.
Although favorite brands and ease of use are driving forces in
vehicle appearance purchases, nearly half of the do–it–yourself
appearance product consumers make their purchases impulsively.
These consumers are 47 percent more likely to decide to buy
products once they have gone into the store, heightening the
importance of in-store placement, promotion and appealing
packaging.
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